US President Donald Trump’s first series of long-promised tariffs on imported products came on Tuesday, underwhelming markets, with even directly affected firms shrugging off the decision.
Bloomberg reports on the minimal impact of the trade action:
- South Korea’s LG, which was hit by the 30% duties on washing machines, pared losses on Tuesday trading; China’s biggest solar panel maker, JinkoSolar, said the outcome is “better than expected”
- The share of GDP of these types of household equipment is “essentially 0.1%, at maximum”; the economic impact from tariffs is not material: Trinh Nguyen, former World Bank consultant and senior economist at Natixis SA
- Analysts say the only cause for concern is whether or not this is a sign of more things to come
- Whether or not China responds with a warning shot to dissuade more significant action is also in question
China has plenty of options to retaliate:
- Specific US companies, industries at risk for retaliation include Apple, Boeing and soybean exports
- China has long history of tit-for-tat retaliation in trade disputes
- Nationalist tabloid Global Times said China should not let the US get away without paying a price for “making unreasonable demands”; China can sell US Treasuries, restrict imports on agricultural products, machinery and aircraft, the paper warned
Sounds like China will be ok. We do have to get our jobs back up here in the US. Retaliate seems like a bit too strong of a word. We are just doing biz. You do it all the time. We are all going to be fine one way or the other. Let us get our house in order for a few years. Lots of great things coming between us both 🙂
China unlike America does not have an Achilles Heel. America does big time as it`s( Ahilles Heel ) it`s military bleeds it white. So long as the US like Don Quixiote keeps tilting at windmills and is fighting all over the world it cannot but lose such a trade war. And not stretching it too far, it`s leadership is just as delusional as was Don Quixiote.
Apple is moving 350 billion into the US. I wonder why? Can you say: "Tax Cuts"? Well, it looks like they are smart at maneuvering. Interesting. Beijing, according to this report, should now have Apple as a retaliation candidate. China sounds very difficult for an American company to operate. What ever happened about the Apple counterfeit stores that sprang up all over China several years ago? I believe our president Trump has had to mention intellectual property theft as an issue that has now seen it’s time to be put on the table. Harley Davidsons: 100% import tax. I wouldn’t think China would want to argue or tussle over some minor to medium sized import law correction and or public acknowledgement of real existing issues that are obviusly harmful to our country’s businesses, employees and sub contractor/vendors. We must take corrective actions when the perpetration is blatant. Since it is so clear we figure it will be easily understood by China. Thus we really shouldn’t see a big trade war.